CDM in the Oil Palm SectorClean Development Mechanism (CDM) has come a long way in both Malaysia and Indonesia. While Malaysia has always been teeming with oil palm plantations with more than 400 mills that produce Crude Palm Oil (CPO), Indonesia is aggressively pursuing its own ambitions to become the No.1 CPO producing nation in the world a situation that would soon become a reality. Plantation owners in both the countries are slowly coming to grips with the opportunities that are bountiful for initiating CDM project activities in a mill. Under these circumstances, keeping in spirit of the CDM, sustainable development in palm oil is gaining significance. It would be worthwhile to realize that milling of Fresh Fruit Bunches (FFB) to produce CPO generates a fair amount of both solid and liquid waste both of which could be efficiently managed by adopting innovative project activities that could have a strong additionality, another critical requirement for a successful registration of a CDM project. Millers, even though were apprehensive in the beginning with regard to CDM, are gradually realizing the potential that exists in the mills that could lead to a sustainable development of various CDM projects in the mill. Recent projects in the above host nations that are awaiting validation and registration stand testimony to the above fact. In particular, it would be worthwhile to understand the specific opportunities that could find favor with the project developers of CDM projects in a palm oil mill: • Composting that could help in the management of both Empty Fruit Bunches (EFB) and Palm Oil Mill Effluent (POME) thus enabling the mills to achieve zero waste management while at the same time producing organic compost that could successfully substitute chemical fertilizer in the plantations, albeit partially, thus giving rise to substantial savings and a sustainable business model. • Biogas capture from POME and destruction. Project developers in this regard would be well advised to note that flaring of biogas is not seen sustainable under Gold Standard CDM Projects which may become essential in future in order to ensure premium carbon credits for project developers in future. • Biomass to energy production is another project that seems to find favor with groups that especially have other project activities adjacent to a mill thus displacing fossil fuel based energy. Thus it could be seen that there are many opportunities that prevail in palm oil milling sector for a successful implementation of a CDM project in a manner that is fully sustainable and with a sound financial returns. By P.Krishnamurthy KYOTOenergy Pte. Ltd., KL Rep. Office |
